Intro A project requires an investment of $69 million and has expected annual cash flows of $20.68 million for 4 years, starting in one year. The annual standard deviation of the project's returns is 40%. The company can expand the project by investing another $69 million in 4 years and will then earn the same expected cash flows for another 4 years. The appropriate discount rate for the project is 10% (EAR) and the risk-free rate is 4% (continuously compounded). Part 1 18 Attempt 1/10 for 10 pts. What is the NPV of the project ignoring the option to expand (in $ million)? 2+ decimals Submit Part 2 | Attempt 1/10 for 10 pts. What is the value of the option to expand (in $ million)? 1+ decimals Submit Part 3 - Attempt 1/5 for 10 pts. What should the company do? O Start the project and the follow-on project Start the project, then decide about expansion later Start the project, but not the follow-on project Cannot say, need more information Reject the project Submit